While Microsoft is staking the future of Xbox on cloud gaming, Nintendo has long depended on iconic properties like Mario and Pokémon to drive sales of its video game consoles. In fact, the Japanese company has been infamous for filing lawsuits to protect its intellectual property for about as long as video games have been around. In one notable example from the 1980s, Nintendo sued Blockbuster for copyright infringement after the video rental chain added games to its lineup of rentable products. The court eventually determined that video stores could rent Nintendo games to customers, but they had to stop photocopying the games’ copyrighted instruction manuals. 

So when the indie studio Pocketpair released a new game called Palworld in January 2024, many gamers predicted that Nintendo and its partner The Pokémon Company would sue for copyright infringement. Known widely by the nickname “Pokémon with guns,” Palworld shares several similarities with the global franchise of Pokémon video games. For instance, players in both games use circular containers to collect whimsical monsters with special powers who fight for them in battles. Players also noticed that some “pals” in Palworld look like Pokémon copycats, including the character Sparkit. With its electric yellow coloring, pointy ears, and bushy tail, Sparkit has been frequently compared to the Pokémon fan-favorite Pikachu.

Palworld was an instant hit, gaining more than 25 million players in its first month and remaining the third-most-played game of all time on the platform Steam. But then in September, Nintendo finally filed a lawsuit in Japan accusing Pocketpair of violating several of its patents. It’s not yet clear which patents Nintendo is referencing, but the lawsuit refers to Pal Spheres in Palworld, which are very similar to Poké Balls in Pokémon. Nintendo and The Pokémon Company filed a patent for the Poké Ball system in 2023, which could mean other game developers are legally prohibited from using the mechanic in the same way. According to industry experts, this upcoming legal battle could set a precedent for using broad patents to suppress competition and possibly stifle innovation.

Questions:

1. Why do you think Nintendo is so protective of intellectual property like Mario and Pokémon? 
2. How could Nintendo’s lawsuit against Palworld impact the global video game industry? Do you think other companies will potentially patent aspects of their own games? 

Sources: Peter Hoskins and Liv McMahon, “Nintendo Sues ‘Pokémon with Guns’ Video Game Firm,” BBC, Sept. 19, 2024; Kalhan Rosenblatt, “Nintendo and The Pokémon Co. Accuse Palworld Game Developer of Patent Infringement in New Lawsuit,” NBC News, Sept. 19, 2024.